Kris Galloway: “AI-generated documents and deepfake fraud increased by 78%”

As iGaming regulators tighten frameworks around responsible gambling and fraud prevention, Sumsub is helping operators strike a balance between compliance and user experience. Kris Galloway, Head of iGaming Product at Sumsub, explains how AI-driven verification, behavioral analytics, and dynamic risk scoring allow secure onboarding in seconds, reduce player friction, and combat modern fraud, including deepfakes and AI-generated documents, while keeping operators aligned with evolving AML and KYC requirements.

Q:As regulators continue to tighten frameworks around responsible gambling and fraud prevention, how is Sumsub adapting its technology to meet both compliance demands and user experience expectations?

We’ve moved KYC from static, document-led checks towards dynamic, contextual verification. As regulations tighten, especially under measures like the Online Safety Act, some operators might respond by adding more ID demands than are truly necessary.

Strong compliance still matters, but it doesn’t require constant interruption for players. Modern infrastructure offers several robust solutions: non-document checks and reusable identities, for example, can enable secure onboarding in seconds while limiting the amount of information a player must share.

76% of fraud occurs after onboarding. So, this clearly tells us end-to-end background protection is now non-negotiable. Behavioural analytics, dynamic risk scoring and always-on monitoring can ensure additional checks are triggered only when there is a genuine sign of risk. Real-time intelligence across user journeys lets operators stay aligned with regulatory expectations while keeping the experience smooth for legitimate players.

Verification performance is already improving industry-wide, with average verification times dropping by about seven seconds - proving stronger controls don’t have to damage user experience.

Q: In recent years, AI-driven identity verification has gained significant traction. How is Sumsub leveraging artificial intelligence and machine learning to detect fraudulent behavior more effectively in the iGaming sector?

Manual checks and legacy verification systems belong to a different threat landscape. They can’t keep up with modern tactics, like AI-generated documents and deepfake fraud, which increased by 78% among iGaming operators last year.

Modern verification depends on AI to assess documents, device indicators, behavioural patterns, and user journeys in real time. This gives operators a clearer picture of risk and enables proactive fraud prevention, rather than damage control.

AI can flag subtle signs of automation that are difficult for human reviewers to detect at scale. Combining AI oversight with human review makes it possible to understand identity and behaviour at any stage of the player lifecycle, and ensure interventions are proportionate and accurate.

Q:Do you view the heightened scrutiny around AML and KYC processes as a positive step forward for the iGaming industry? And, in your opinion, have early fears that stricter compliance requirements would drive players away proven justified?

The global online gambling market is projected to reach around $153.57 billion by 2030. This will naturally attract closer regulatory scrutiny to account for the increase in players - and fraudsters. This has to be a good thing, as long as it’s aligned with how fraud actually occurs.

For instance, bonus abuse accounts for over 63% of all iGaming fraud. Heavy upfront checks that ignore these downstream behaviours just introduce friction without addressing the causes of these biggest losses.

When verification is fast, transparent, and well-communicated, players adapt easily. However, they will rightly not put up with high-friction checks and excessive personal data requests.

Q: In your experience, have the strengthened AML and KYC compliance requirements for iGaming operators achieved their intended effect? Or do you think that regulators and operators may have struggled with parts of their implementation?

Strengthened AML and KYC requirements have moved the industry in the right direction, but the impact has been uneven. Both regulators and operators are still adapting to a fraud landscape that evolves faster than most legacy systems can respond to. Awareness and visibility are just as important as compliance, and with only 54% of iGaming fraud being caught on average, operators cannot rely on rule-tightening alone.

Without modernising how checks are triggered and how signals are analysed, stricter requirements risk producing more administrative effort (meaning reduced visibility for operators) than actual protection.

Take data collection: gathering more information from players increases operational workload, heightens privacy concerns for end users, and creates attack surfaces for fraudsters using synthetic identities and documents. There are better options out there, like implementing lower-friction checks that draw on trusted data and behavioural signals, to minimise player disruption without sacrificing compliance.

Q:Beyond KYC and AML, what other emerging compliance areas should operators be preparing for in 2026 and beyond?

One clear direction is data minimisation: regulators are increasingly focused on ensuring platforms collect only what is necessary. Compliance is trending towards systems built for transparency, especially explainable AI. Now that behavioural analytics are widely accessible, operators will be expected to maintain more proactive oversight of unusual patterns while being able to explain why certain players are escalated for additional checks.

Regulators are also looking at whether operators maintain continuous anti-fraud model updates, not just annual reviews. Those who invest early in scalable, privacy-conscious infrastructure that adapts at the same pace as emerging fraud risks will be best placed in 2026.

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